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3mo ago

House Republicans Advance Sweeping Bill with Deep Medicaid Cuts and Expansive Tax Breaks

Lawmakers press forward with marathon hearings on a $5 trillion package pairing Medicaid reductions with tax relief, facing internal GOP divisions and public protests.

Senior citizens receive a hot meal at the Roosevelt Community Center as food banks across the country, already strained by rising demand, say they will have less food to distribute because of federal funding cuts and pauses by the Trump administration, in Charleston, West Virginia, U.S., March 19, 2025. REUTERS/Evelyn Hockstein/File Photo
Speaker of the House Mike Johnson, R-La., speaks during a news conference at the Capitol, Tuesday, May 6, 2025, in Washington.
A view of the U.S. Capitol dome in Washington, D.C., U.S., November 24, 2024. REUTERS/Benoit Tessier/File Photo
FILE - Speaker of the House Mike Johnson, R-La., joined from left by House Majority Whip Tom Emmer, R-Minn., and House Majority Leader Steve Scalise, R-La., talks to reporters about his push for a House-Senate compromise budget resolution to advance President Donald Trump's agenda, even with opposition from hard-line conservative Republicans, at the Capitol in Washington, April 8, 2025. (AP Photo/J. Scott Applewhite, File)

Overview

  • The proposed legislation includes $900 billion in Medicaid cuts, introducing stricter work requirements and reduced federal funding for certain enrollees.
  • The tax package, estimated at $4.9 trillion, extends Trump-era tax cuts and adds new breaks for tipped wages, overtime pay, Social Security benefits, and auto loans.
  • Green energy initiatives from the Biden-era Inflation Reduction Act are targeted for rollbacks, with funds redirected to natural gas and oil development.
  • Moderate Republicans and those from high-tax states are pushing back on provisions like the Medicaid cuts and a SALT deduction cap increase deemed insufficient.
  • House Speaker Mike Johnson aims to finalize the bill by Memorial Day, though deep GOP divisions and Senate negotiations could delay progress.